Stocks Reversing Higher into Final Hour on More Dovish FOMC Commentary, Stable Long-Term Rates, Less Emerging Markets/US High Yld Debt Angst, Transport/Homebuiding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.3 -2.4%
• Bloomberg Global Risk On/Risk Off Index 2,964.0 -7.0 points

• Euro/Yen Carry Return Index 134.88 +.51%

• Emerging Markets Currency Volatility(VXY) 10.7 +.9%

• S&P 500 Implied Correlation 49.9 -4.3%

• ISE Sentiment Index 98.0 +1.0 point
  

• Total Put/Call .76 -14.6%

• NYSE Arms .43 -74.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.01 -1.77%
  

• US Energy High-Yield OAS 480.33 +1.11%

• European Financial Sector CDS Index 56.23 +1.48%

• Italian/German 10Y Yld Spread 98.0 +1.75 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 59.97 -.33%
  

• Emerging Market CDS Index 183.35 -2.9%
  

• iBoxx Offshore RMB China Corporate High Yield Index 187.05 -.01%

• 2-Year Swap Spread 11.25 +.5 basis point

• TED Spread 16.75 -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.0 unch.
  
• MBS  5/10 Treasury Spread  77.5 +1.0 basis points
  
• IHS Markit CMBX BBB- 6 74.75 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.53 +.16%
• 3-Month T-Bill Yield .01% unch.
  

• Yield Curve 147.0 +3.0 basis points
  

• China Iron Ore Spot 158.80 USD/Metric Tonne -.71%

• Citi US Economic Surprise Index 31.3 -16.2 points

• Citi Eurozone Economic Surprise Index 90.60 -1.7 points
  

• Citi Emerging Markets Economic Surprise Index 34.8 -2.3 points

• 10-Year TIPS Spread 2.31 +1.0 basis point
• 100.0% chance of no change at June 16th meeting, 100.0% chance of no change at Sept. 22nd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -29 open in Japan 
• China A50 Futures: Indicating +28 open in China

• DAX Futures: Indicating +73 open in Germany

Portfolio:

• Higher: On gains in my industrial/medical/biotech/tech sector longs
  

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  

• Market Exposure: Moved to 100% Net Long